Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The ITAT dismissed the revenue's appeals and upheld the CIT(A)'s order deleting the additions made by the AO. The assessee provided invoices and documents proving the purchases, which were accepted in the remand report. The 10% disallowance of other expenses was deleted after the AO verified the invoices. The disallowance of foreign exchange loss was rejected, relying on precedents that the revenue cannot question the commercial expediency of business expenditure if the nexus with business is established.
The ITAT dismissed the revenue's appeals and upheld the CIT(A)'s order deleting the additions made by the AO. The assessee provided invoices and documents proving the purchases, which were accepted in the remand report. The 10% disallowance of other expenses was deleted after the AO verified the invoices. The disallowance of foreign exchange loss was rejected, relying on precedents that the revenue cannot question the commercial expediency of business expenditure if the nexus with business is established.
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